An option is:
A) The right to buy or sell a commodity at a fixed pr
B) The right to buy a commodity at a fixed price
C) The right but not the obligation to buy or sell a
D) The right but not the obligation to buy commodity

Question

Quizplus · Accepted Answer

An option is a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset (such as a stock or commodity) at a predetermined price and within a specified time frame. Therefore, option C is the correct answer, as it accurately describes the definition of an option. Option A and B are incorrect because they do not include the element of choice, and option D is incorrect because it only refers to buying a commodity and does not include selling.

An Option Is